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tv   Closing Bell With Maria Bartiromo  CNBC  August 2, 2013 4:00pm-5:01pm EDT

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like your ties always on a friday. that's it. we're going out for the all-time high for the dow and s&p after the weaker than expected jobs report. it's that kind of a job market and that kind of economy. stay tuned. we're coming up in the next half hour with maria bartiroma. and happy friday. hello, everybody. i'm maria bartiroma. even after a weak jobs report we're once again closing an uncharted territory. new high for the dow, new high for the s&p average. seeing some gains at the end of the day. money moving into equities finishing up more than 28.
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the nasdaq composite sitting there. getting a bid all day. 3689 and the standard & poor's's index, 1709 reached tonight with a gain of just 2.75 points. let's get to bob miss anpa sami. >> they jierjs they don't put out press releases but it was at least one. take a look at it. we were waiting for it to happen around 3:00. the volume not particularly strong until we got into the last half hour of the day. why did we move forward? i have been calling around.
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i got a whole bunch of different reactions but the usual. fed's going hang around longer. interest rate wise was halted and we're still seeing selloffs meeting with the by the dip mentality. there's no alternatives to owning stocks. the dow would have been higher if it wrnltd for the disappointing picture that we got from the major oil companies. exxon held back. this was a lot worse story just two or three hours ago, so even they almost went positive on the day. it's not like they're going out. it collapsed. it's the lowest level since march and that was the lowest level. next week, economic news is going to taper off a little and even the news is going to taper off. disney will be coming up but i want you to know it's going to
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be a big week. normally deadsville for ipos. the stock market is flat. hire's how we did for the week. the transports up 2.7%. we did not close at a record high on the transports it does not look like, no. nasdaq, s&p 500, all closing at a terrific week. maria, have a good weekend. >> as you, bob. the dow has posted numbers for a sixth week in a row. good to see you both. ralph, got to kick this up with you because you've been so right on the market. where are we right now in the secular bull market which, of course, is your choice of words, not mine. where are we in the psych snl. >> maria, we're at an inflexion point and i say that because the
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leadership here has been the russell 2000, russell 3000, growth in value and mid cap value. that's a sign of confidence and something we've been waiting for. the public is coming in, maria. >> so you think this company has legs and if i were to put money here, you think that's a good idea. >> absolutely. i think this market shows it has a lot of resiliency. you saw it again today. up, up, and away. >> okay. up, up and away. kenny pocari at the end of the program, what happened in terms of the end of the day here? all of a sudden the dow trades up and closes at an all-time high. >> you see that and it's great and feels good. i have to tell you although i agree with ralph that think it's
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turning and leadership is showing some important qualities and the market may go higher, i have to tell you, think it has to do with we're waiting for more debt. we heard it all week, the market can't go lower. if the economy was this strong and if the market was okay, then everybody should walk away and watch what happens, so i think we're going to pause. i think the market's going to come back a little bit. it's not going to crash by any stretch but i think it ooh goes ing to try to want to come back and test it and as long as the fed keeps holding everyone's hand, it's not going do it. >> was there a buy program at the end of the day? >> i think there was. there definitely was. you saw them try to push it one more day to the highs. we're getting tired up here. it didn't feel like there was all this commitment wanting to go forward. it's advancing on not a lot of vacuum and then what happens is people are feel like once again they're going to miss the train
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and then they're starting to jump on which is exactly as we know, probably the wrong time to jump in. it may pull back over the coming weeks. >> does it tell you anything? stephanie, i'll be with your. for example, facebook. it's been, you know, the disaster du jour when it first went public and yesterday today it closed above the ipo price of $30. does that tell you about the market or facebook specifically? >> no, no. it's facebook but it's telling you confidence is coming back. i think a name like that has a long way to go. but i disagree with kenny when he's talking about -- worrying about the vacuum and near term. i'm going to make a notoriety now that i think volume is slowly going to start to accumulate. the market is going to see more
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and more volume on the new york stock exchange. that's going to happen and that's a sign that the public is coming in. things look great. don't worry about the pullback. >> stephanie, let's get your take on this. would you put new money to work and talk about what you see as the major catalyst. >> i think the reason that the market's turned around today is really because we got a lot of data this week that offset the disappointing numbers today. look. the numbers today were really crummy across the board in terms of the job market but we did get a good agp number. the psis are picking up. the employment number rose 6 points and the initial claims which is a leading economic indicator for jobs was actually better and you're at cycle lows, so think we're able to balance this bad number today. i think we're running at about a 2% gdp rate. i think it was the bottom and the draw for gdp and with little bit better in terms of less
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impact from the sequestration and a little less fiscal issues, i think that you're going see over the second half of the year, recovery. you're going to want to hold cyclicals. what we've been doing is raising a little cash. earnings season always gives you opportunity. we were buying eaton down, 5%. occidental earlier in the week. anadark anadarko, costco. we've done the homework and do think there's opportunities there and you're getting in at lower prices. >> i think all these comments are correct. you know, we're all arguing from our different perspectives. what's happening today, what's happening tomorrow. i agree. i think the second half of the year and into the year is appropriate. but when i add to the conversation about what's the near term, what's happeninged on the and tomorrow. this is what's gets frustrating.
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if everyone is saying it's turning great why are we not getting action from the fed we're comfortable with it and we're pulling back? we're not getting it. >> i'm not saying they're hitting on all cylinders. 2% is not something to get excited about. you know the market is a discounting mechanism. take a look. what turned us around this week? it was the number numbers, the china pmi numbers that were better than expected. we're starting to get a little bit more of the global support and that's what's started to turn us around a bit. i think that's what gives some people confidence that we're going to see gradual recovery. >> listen. i hear you. we're already up 2% year to date. we're up 20% already. i think my sense of the market just feels like it's a little bit ahead of itself. so when i talk about this pullback, that's what i mean.
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>> ralph, jump in here. >> stephanie's right. >> i think this is the exact sentiment that makes you more bullish. >> absolutely. stephanie said something that was absolutely correct. the market is a discounting function. we're at all-time new highs. what is the market saying? the market is saying the future's going to be better, brighter. come on, guys. it doesn't get much better than this. >> leave it there. we're going to watch it. ralph acampora, kenny polcari and stephanie link with us. mousafa have i pronounced it correctetly? >> it's mouhafa. >> thank you. what are you seeing in terms of the job picture right now? >> you know, i wasn't just
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listening to the previous people you were talking to. you know, i wouldn't call it disappointing. sure, the numbers weren't as high as the consensus was, but the fact is that the u.s. economy over the last months. we added 5,000 and then gulf of mexico specifically -- you know, we've added about 5,800 job this year, so things are looking up from the manufacturing side, especially in the auto industry. >> so the auto industry you think is one of the better industry in terms of hiring right now? >> certainly it is. we have sort of led the recovery and i expect that to continue, you know, going forward in the near term. >> what are you advising gm to do as it relates to the health care law?
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>> i'm not the expert on that. the reality is gm already has an extensive health care policy so it's not an issue for snus let me ask you where the job growth is? at this point we've got mixed stories. even though one day we'll get positive news on the economy, the jobs numbers even while we saw jobs created, it was much lower than people expected. >> maria, i think when i look at it from the auto industry p perspecti perspective, it's the most important thing which is our people that have jobs are concerned that they're going to lose those jobs because that's when they purchase the vehicles and what we're seeing is growing confidence that, you know, the deterioration in the job market has gone. we may have not turned it as strongly as we'd like to. that's really what drives the
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auto sales. >> let me ask you about detroit going bankrupt, mustafmustafa. what kind of effect do you think detroit going bankrupt will have on the industry? >> very little. detroit as a city is quite separate, you know, from the auto industry itself. all three of the detroit-based companies are global companies and, you know, much of our sales are obviously outside detroit in the states and around the world. so the direct impact on the industry will be quite, you know, minimal, but the people that work for gm live in detroit and obviously that's an area of concern for us, but, you know, from the perspective of auto sales and the performance of the industry and its employment, you'll not see much of the impact if any. >> we'll leave it there. thank you so much. we'll see you soon. coming up next, what does
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the earnings report mean for ben bernanke. former fed governor randall kroszner will give us his take. then he was once the richest man. iky batista has lost some $33 billion in 16 months. we'll find out what happened. then millions of time warner customers are less than an hour away from losing all cbs programming. 'll get the very latest. plus, oscar-winning actor george clooney is not in the air when it comes to dan loeb, the activist investor. he's slamming dan loeb for what he sees as meddling in the sony movie business. stay with us. we'll be back in a moment. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪
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welcome back. they call it the great row tachlgts it will rotate into stocks. this week more than $6 billion went into stocks. as for bonds, it was an yoet flow at close to $2 billion. could they put the brakes on the so-called great rotation. ri
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jeff, you say the money that flowed, we're seeing that. make the case. >> i've never been a big fan of the great rotation trade. i think it's overblown and think you have to be careful what you wish for in terms of whether we see this huge exodus out of bonds into equities because you rightly mention interest rates. that's going to be the key metric. it's really misplaced. when you get really granular on these fund flows, they tell you a bit different of a story. did some checking out. i looked at for instance the etf. they saw v $57 million come out last week. so that's huge. and i really think that the small caps have led this rally and there could be a canary in the coal mine. so i don't think there's anything in place. i'm just not buying it. >> rick do, you think we'll see an impact of the jobs data on
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the flow of funds out of bonds? >> you know what? i want to dispense and dispel both of these myths. first of all, mr. cox is always right. i agree with him most of the time. i agree with him today. you know where it went? i just looked at dow jones. the most recent data for money market. guess what? money markets increase. 2 billion in the lastest to 2.04 trillion. there's the stimulus sitting there. the second myth we're going to bust. all right. we settled at 271. we're at 260. down 11 basis points. what when was the high yield close? i'll tell you when. the fifth of july at 274. what day was it? thats we the friday jobs record where we had a big number and big revisions. what was the biggest day's settlement? 250. let's get this straight. when you had a good number, we went up 24 points.
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when you had a pretty much equally disappointed one, we came down 11. nothing else really matters. that seems to be the fact at the time at the moment right now. >> and is the fed losing control of interest rates at this point? >> no. the question is the market taking back control? that's the way i would phrase it. >> what about you, jeff? >> i think that's a good way to put it. when you talk about it, when interest rates are supposed to go up, they will go up and the market will dictate it. the fed has control over some near term interest rates but ultimately it's going to be a question of whether they can dance this dance that they think they can dance where they strike this perfect balance and are able to engineer the kmef and we've seen time and time again they won't be engineered over the long term. >> rick, what has been the reaction to today's data among traders there sf.
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>> you know, most traders were buying into the number but they're really buying into it for the wrong reason. the real issue on the floor, the biggest part of that number that was debated was two-fold. the fact that you had negative sign on average hours earnings -- >> there's such a huge disconnect between wall street and main street, bob ricrick. >> they're still unemployed, but we can't find them anymore. >> and 85,000 of those jobs came from leisure or hotel. the quality of the jobs is really, really lame. >> thank you. egypt is the new hot spot. they're planning mass demonstrations with protesters marching out of 33 mosques in cairo. and the u.s. embassy in
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egypt is one of several middle eastern embassies to close on sunday, the same day as president obama's birthday because intelligence sources have uncovered a possible al qaeda terror threat in the middle east. we'll take you there next. stay with us. powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price -- just $7.95. in fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. i'm monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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welcome back. another round of mass demonstrations in cairo to talk about. we want to go to ayman moye la
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hinn. >> they've been demanding they be reinstated. there have been a few squirmishes but none compared to what they've seen in a few weeks. u.s. officials including william burns is here. he's trying to mediate between the egyptian officials and the brotherhood on what many think is a pending crackdown against this sit-in location. many have been calling for the police to go in and break it up violently if they have to. that has people afraid that it's going to leak to more bloodshed and more violence. the u.s. embassy says it's going to be closed for sunday and perhaps longer in the wake of
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this intelligence threat. it's been extremely fortified because it has dealt with a lot of street protests in the vicinity over the last two years. now they have one more threat following the revelation that there is this al qaeda-linked plot, perhaps, that could unfold somewhere in the middle east. it's certainly a two-threat post. the street protest and now this emerged terrorist threat. >> all those embassies will be closed, as you said. a number of u.s. embassies and consulates will be closed as a precaution and due to security concerns. nbc's pete williams has more. pete. >> they're mentioning some unspecified plot to attack diplomatic sites on sunday. it turns out to be 23 embassies
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and consulates in 14 countries. what would normally be a workday in the muslim world. they're most le in the middle east and north africa. unclear whether they would remain closed beyond sunday at there's an alert for people traveling overseas. that's an indication that the period of time of this threat is at least four weeks and that the plot may target other u.s. interests overseas, not just diplomatic ones. you mention thad the first day of this august 4 is also president obama's birthday, also the inauguration day. officials tell us they don't think it's tied to either of those two things but may have some connection to the fact that the fasting called ramadan ends about this time of year, maria. >> pete williams, thank you very much. we'll come back to you with new news as it develops. meanwhile george clooney has
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welcome back. it started as a down day on wall street for the markets. stocks rallies for late rebound even helping to bring facebook to close above the ipo price. who are the big movers? josh lipton joins us with that. >> let's start with facebook closing above that ipo price for the first time pushing over 38 bucks in the final minute 106s 2% in the past week, up 40% since reporting earnings last week. another name we're watching. dell moving sharply higher. dell's special committee and the buyout committee reached an agreement that would help clear passage of a deal. aig also rising today. that after the company posted strong earnings and said it would return capital
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shareholders. finally, chevron, the oil giant, 26% drop in net income due to lower prices. maria, back to you. >> thanks so much. it changed the dynamic for when the federal reserve may make a move and slow down the stimulus. we bring in right now randy kroszner. he's from the university of chicago school of business. thanks for joining us. >> great. >> was it great? the jobs numbers today? >> not so great. so unfortunately this is like the worst-case scenario as far as the fed is concerned because there's some part s of the jobs report. jobs were created. that's a positive. but when you look at the payroll numbers, they were weaker than expected. it doesn't give you a clear direction as to whether they need to take a step down or not.
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i thank'ink they're on track, b there are real questions. >> you were in the room when policy makers were making the decision. is this the kind of idea they would slow down with the idea they want to begin tapering in september? >> that's why it's so difficult because it depends what you want to pick out of it. it was a mixed report. there were a number of things that were negative. >> it wasn't that mixture. for the most part you've got job creation under $200,000 a month for several months now, so when you look at it, the job creation, which i guess is most important, right? >> yeah. >> it's not there. >> but you've got two ways to measure how the labor market is doing. one is the way they measure the unemployment rate and the household survey and the other is through pace rol jobs and certainly as you said, payroll employment was lower than expected. negative revisions the previous months, but we -- by the household survey when you knock
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on people's doors or give them phone calls, reasonably robust growth of more than 200,000. so it's hard to say we're really far off from where we were and so i really think the september number is going to be the tiebreaker. >> okay. so the september number you think -- in other words they don't start taping in september. we get it and maybe they start tapering after that if the number jives? >> i'm sorry. the number that will be reported in the beginning of september. >> for the month of august, okay. >> if that's the clear number, clear -- bad number, that will, i think, be the determining factor. right now both sides are going to be able to pick something out of this report to say we should or shouldn't move. >> okay. and so what about the rate ticking down to 7.4%? looks like a good number. what does that tell us? how come the job creation isn't there where we would like it to be and yet the unemployment rate goes down? >> yeah. this is one of those challenges because we use two different
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ways of collecting data. one is through an establishment survey, actually getting information from firms. the other is through a household survey asking individuals, knocking on the doors. they give results like they did. the household survey suggested pretty robust growth. the labor force participation stayed around the same but we had more than 200,000 jobs created according to the household survey but not necessarily strong in the payroll survey. what's the right number? only revisions over time will tell us and unfortunately we can't be in the future to find those numbers out and that's why they can pull out the negative or positive from this. >> what is your assessment of the job story right now. >> if you look at the picture over the last six months, we had reasonably good job growth. close to 200,000 with the most recent revisions. close to 200,000.
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that's reasonably good. it ain't robust. but it is enough if it continues on to make the fed feel confident to try a step down. it's an experiment. it doesn't mean that they're going to immediately end the program. as you notice they never use the word taper. they want to see what happens before deciding what's next. >> what do you think about whoever follows bernanke's footsteps. it might very well be that the tapering is someone else's problem, right? >> i think the reason the chairman brought it up in may or june is because he's thinking about his own exit strategy. he's thinking do i want to leave this to the next person or at least put it on the table, maybe take a step down and then that person gets to see how the market reacts, the economy reacts and decide whether to quickly wind it down or not. and think that's why he brought it up when he did. >> do you think looking at the
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candidates, do you think janet yellen will be more poised to keep the stimulus in place if the statement goes that way as opposed to larry summers? >> in the short run i doubt that larry would turn the rudder on the ship. he wants to provide stimulus. i certainly don't think he wants to pull the punch bowl away. so think in the short run they'd be fairly similar but over time yelin would stick with the program that has been done in the past few years and larry would take it in a different direction. >> thank you very much. randy kroszner joining us. down to the wire, we've got an hour for them to solve their pricing dispute. that's moments away, 20 minutes away. cbs could go dark for millions
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of consumers if they don't resolve this. also ahead -- >> it's just a question of time. i'm sorry. so i don't know that i'm going to pass him on the right side or the left side but you know it's going to happen. >> yes. that was eike batista talking to me. talk about a world of fortune. he once reigned as brazil's richest person worth about $22 billion. now he's worth about $200 mill and the debt is soaring. we'll mull that around next. stay with us. tens of thousandss in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you.
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welcome bachlkt eike batista's fall has been much. destroying his wealth and potential credibility as a leader. now, take a look at these numbers. his flagship oil company ogx is down nearly 90% this year. his mining and transportation company is down more than 60% and today he had to step down as chair from mpx energy as the company was forced to call off its ipo. his wealth has dropped from $33 billion to $200 million. we want to zero in on batista's
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reversal right now. we are also going to talk about brazil overall coming up when tim seymour joins us. good to have you on program, gentlemen. thanks for joining us. robert, let's talk about it. this is just stunning. of course, we've been running this sound bite. he sat with me for an interview many times and repeatedly said i will become the richest man in the world. they should look behind them because i'm coming up. >> you looked up the numbers. extraordinary losses. batista is losing $48,000 a minute, is that right? >> yeah, maria. i remember that interview so well. it was such a great interview. if you look at the wealth loss of about 32, $33 billion over the past six months, it's about 32 million a month, 69,000 a day
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or 4600 a minute. he had promise add new model for brazil. this wasn't the boom and bust cycle of brazil we had so many times. this was a guy who was using capital markets and globalization to create a new management mod thal was supposed to be immune from these cycles. in fact, it just made it worse and that's what makes this sort of a much broader story than one man's lost. >> i'm trying to get my head around this. i know it's a broader loss than just his browner loss. there are a ton of people working for his companies under that conglomerate who are also feeling the heat. ray, how does this happen? how is it that this person lost $33 billion. can you explain it? >> it reminds me of what happened in the united states with the whole dot-com bubble. all the companies in a few years they're going to look at them as brazil's internet bubble if you
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will. batista will probably be known as an ex-bubble. when you actually see what's been delivered in terms of oil productions and infrastructure plans, he hasn't been able to deliver. >> i think that's a good point. i believe that the oil that he said was there actually did not materialize because the production has come up dry and that's one of the issues. then, of course, you've got the brazilian company which, of course, has slowed down from the peak and there's all the debt he took on. so investors have been selling these companies pretty aggressively in his -- in his overall company. tim seymour is with us now and he's going to weigh in on the conversation as well because tim has done so much work as well.
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tim, good to see you. >> thank you, maria. >> what's your take on this, eike batista losing $33 billion. >> he's a patriot for brazil. he's somebody that ultimately i think is very, very strong in the metallurgical world. the oil and gas world is wre he thought he could have a better path to riches. they're not that good. what we sold there -- some of the comments out of the company in the past couple of weeks have been startling. so it's a concern. >> they really are. i want to look at this interview because, tim, i spoke with batista at the conference last. this was in 2011. listen to what he said at that time. >> you said warren buffett, carlos slim, they'd better be look behind them because i'm on my way to becoming the richest person in the world. do you still feel that way?
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>> it's just a matter of time. i'm sorry. i don't know if i'm going to pass him on the left side or right side, it ooh going to happen. >> what confidence. was that too confident, the kiss of death? arroga arrogant? >> what happened is there were a few things. hubris. again, it really comes down to the assets weren't there and i think you also get into a place where brazil is a country ran up against the real slowing about the super cycle. so everything was wound on its. it was levered upon itself and when it slows down and brazil itself is facing cyclical problems, facing political risks, investors certainly don't need to be there anymore. that was the best time to do it. >> you know, maria, one other point that's important here is the psychology of eike batista.
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this is a guy who grew up in the gold. he's talkinged being used to going from a lot to nothing, building it all back. i think this is the kind of guy, i've seen these kind of wealthy people in the u.s. you remember sheldon aidleson lost $20 billion in the crisis, made it all back. this is the kind of guy i would not counseled out yet. he's still relatively young rngs so charismatic. i think he'll be back but it will be time. >> you think there's a chance of a comeback. let me ask you this. ray and tim, the impact on brazil, i mean batista has six companies and he employed thousands of brazilians, including hundreds more in both chile and colombia. what is the impact on the jobs in brazil and on the economy on brazil? >> i'll weigh in first.
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i think it's devastating and i think it has effects for other countries. they just laid off a thousand people because osx stopped a bunch of contracts. so there's a big domino effect here. he's ramping for greater training, greater technical skills within the brazilian work-force. there's a lot of bottlenecks. one of them is the work-force. one of them is literally the bottlenecks. this is a guy who understood those. number two, he's telling you that brazil itself is failing here and this is what investors are seeing despite the fact that the market is down 50% from its highs. there are people who don't want to touch it even throw is value for brazil. >> final word. would you buy brazil? >> yes. i would be nibbling around. i wouldn't be buying any of the ebx companies but i think you can nibble. it's also involved in some of
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the upscale upstream side of the business. also with the devaluation, a lot of these companies get very competitive. >> all right. we'll leave it there. gentlemen, great conversation. we appreciate it. we'll see you soon. >> going down to the wire again, we're on watch for cbs and time warner. they're moments away that could vanish on time warner unless the two can agree on new fees. we'll have a look at the latest and the media stocks and what we'll be watching at the 5:00 p.m. deadline. back in a moment. 800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550
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the negotiation table as we speak. it is about money, yes, but also about two companies trying to protect core businesses in a changing media landscape. >> maria, they're less than ten minutes to go and no updates from either side of negotiations. they're fighting over how much time warner cable pays for cbs and showtime. they want to protect against price hikes that could send customers running. if they don't extend the deadline, that could mean a blackout for 3 million time
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warner cable subscribers, new york, los angeles and dallas. the two companies reported earnings this week with cbs beating expectations. time warner cable disappointing, but they both used the platform of earnings call to defend their position. ceo saying we think he who has the most eyeballs should be paid the most. in many homes, we're number one. rob marcus saying his company is focused on obtaining quote reasonable pricing for the programming our customers value to ensure they can pay reasonable prices for our video services. eventually, they'll come to a compromise. the question is what kind of price hike they'll agree on and in the meantime, the clock is ticking. >> about seven minutes until the deadline. thank you. so, with this dispute in mind, which stock is a better buy? cbs or time warner cable. brian, who wins this?
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>> it's typically networks get their way and time warner was quoted as basically saying you need to unplug and get it for free. but americans have enough time even getting off the couch for everything let alone unplugging their cable box. i think that now acts as support for the stock. on a valuation, this is a great stock to own and they'll continue to develop their programming. look at netflix, all the places becoming a show and distributor. >> all right. we'll watch more on options action. brian, thank you. for more action, tune in 5:30 tonight after fast money. for an actor who knows nothing about how hedge fund works takes on a hedge fund giant who may know nothing about how hollywood works. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪
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and finally, my observation on hollywood in the form of a new fight over sony. we know the third point investment head, dan loeb, has been making noise about sony's
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underperformance. loeb, who owns nearly 7%, has been urge k them to unlock value for shareholders. typically, i would not question what an activist is not up to. when the stock is not under pressure, i agree. an activist investor pushing for change can often be positive, but you decide. the stock is up more than 90% year to date. over the past 12 months, it's up 71%. in fairness to loeb, the stock is down 40% over the last five years. same over the last ten year, but i don't think george clooney was looking at the stock performance when he said this. i've been reading a lot about the hedge fund guy that describes himself as an activist but who knows nothing about our business and is is looking to take scalps at sony because two moves underperformed. why didn't he include sky fall
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or "zero dark thirty"? you can't cherry pick a small time period and point to two films that didn't do great. fortunately, his business is run by people who understand the movie business ebbs and flows and the good news is they're ignoring his calls. the single least qualified person, he says, to be making these kinds of judgments and he is dangerous to our industry. wow. later, clooney called loeb a carpet bagger. it's safe to say clooney wouldn't invite him to italy, but the bottom line is clooney's sentiment echoes those of many who say activists are in it for a quick trade and do not understand the business or know or care how to run the company long-terme long-term. i'm not against activists. i'm for them. i think it's very positive for the market, but i would also say you need to pick your fight correctly. sony has been an outperformer now and something is going right in terms of strategy, but now,
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two huge egos are squaring off in a huge way. at the least, it should be a lot of fun to watch. just like going to the movies. that will do it for us. thanks so much for being with me. have a fantastic weekend and i'll see you next week. stay with cnbc because fast money begins right now. new york city's time square, i'm melissa lee. your traders -- stocks holding steady with both the dow and s&p 2500 closing at new highs. this on the back of july's disappointing jobs report, but the real tell was in the bond market where ten-year price whipping higher. is the settaper n

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